And The Spirit Aerosystems Bet Winner Is... Zero Hedge
Earlier today we bet against the Goldman Sachs - Fed complex, claiming that either Bank Of America or Goldman Sachs would end up being the underwriter for the Spirit Aerosystems $300 million bond offering. We were right.
From Reuters:
Bank of America, Credit Suisse, Morgan Stanley, and Barclays were the joint bookrunning managers for the sale.
BORROWER: SPIRIT AEROSYSTEMS HOLDINGS INC*
AMT $300 MLN COUPON 7.50 PCT MATURITY 10/1/2017
TYPE SNR NOTES ISS PRICE 97.804 FIRST PAY 4/1/2010
MOODY'S B2 YIELD 7.875 PCT SETTLEMENT 9/30/2009
S&P DOUBLE-B SPREAD 471 BPS PAY FREQ SEMI-ANNUAL
FITCH N/A MORE THAN TREAS NON-CALLABLE 4 YEARS
* GUARANTEED ON A SENIOR UNSECURED BASIS BY ALL GUARANTORS
UNDER ITS SENIOR SECURED CREDIT FACILITY.
Somewhere, Ronald Epstein is sleeping soundly, knowing that his unquestionable ethics have allowed his bank to underwrite a bond issue for a company he upgraded contrary to his will, so that Bank of America can repay its own revolver using other people's money.
And somewhere else, foolish investors have marked these bonds at par.
(1 vote)
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on Thu, 09/24/2009 - 23:01
#79212
I am still feeling pretty darn good about BAC/ML's Chief Equity Strategist David Bianco's overweight call on the dynamic United States banking sector.
I'll be saving that September 18 report by Mr. Bianco and looking at it fondly when I am luxuriating in my Seven Mile Beach private estate after all the "big money" I am going to make by investing very, very heavily in the domestic banking sector as of September 18.
on Fri, 09/25/2009 - 07:11
#79350
Ahhh, you brought back memories of Stingray City with your Seven Mile Beach reference.
on Fri, 09/25/2009 - 07:55
#79370
yes, been there twice.. grand cayman my favorite of the caribbean...still have a couple more i need to visit.
on Fri, 09/25/2009 - 12:11
#79721
Right DH;
Did you make $5.2 B trading Q2 derivatives too?
The giant offshore gambling casino.
Wonder how long the losers can play the game?
Or is it over already...?
http://media.cnbc.com/i/CNBC/components/Syndicated%20Video%20Player/videomodule.swf?id=1269475331&pcode=cnbcplayershare&play=&base=http://plus.cnbc.com/stickers/partners/cnbcplayershare/
on Fri, 09/25/2009 - 12:57
#79778
Also made $5.2 B Q2 trading derivatives too in the giant
offshore gambling casino?
Wonder how long losers will play the game?
Or is it over already...?
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3251493
on Thu, 09/24/2009 - 23:01
#79213
Congrats! Now where do i pick up my slice of the cake?
FYI - good job
on Thu, 09/24/2009 - 23:03
#79215
Is this not illegal?
on Thu, 09/24/2009 - 23:10
#79221
Illegal was so last week.
on Thu, 09/24/2009 - 23:17
#79222
We can appreciate the earnestness of the inquiry, can we not?
Ugh... this just gets worse and worse. What's 300 mill between family?
on Fri, 09/25/2009 - 02:14
#79275
a)yes, we can, i can tell you i appreceite it a lot. In fact i would venture to say that this is illegal in the spirit of the law at the very least.
b)a lot, really. For 300 mil I can retire with my family to live a life of extravegant leisure.
this crack me up. it makes me think of the mlk quote that obama has used (you know, the one about the arc, justice , and the universe and what not)and the ultimate irony of it. And things like irony and satire make me laugh. I sure appreceite satire a lot more than the pastoral shit the were feeding me in the 90's. Lets get the future going. Sure tragedy is bad but after that comes the drama, here this whole shitmobile (to borrow a word) either gets cleaned out or we get a new car (preferable) and it rides into the sun.
The script is still unwritten.
on Fri, 09/25/2009 - 04:37
#79306
With all the snarky comments we make on this blog, it's so refreshing to hear someone ask a simple direct question.
Is this not illegal?
In my best imitation of Bill Clinton, it depends on what is meant by "illegal." From a strictly legal go-to-jail sense, probably not unless there is some stray smoking gun e-mail out there requesting an upgrade opinion of Spirit in front of the bond underwriting.
But does BofA's actions scream immoral and unjust from the highest roof tops of NYC?
Yes!
How quaint that we would even think in the archaic terms of moral or justice. On Wall Street (and in Washington for that matter) those terms are used for toilet paper.
on Fri, 09/25/2009 - 08:20
#79385
CD, I believe you have nailed the fundamental problem: the general breakdown of our morals and ethics.
Consider the magnitude of the Code of Federal Regulations and the current condition of our society. Is passing more laws likely to be successful in improving our behavior?
The current game of figuring out how to avoid the intent of regulations without actually violating the law will always be won by the gamers. Passing new regulations to combat the undesireable behavior just leads to the next round of the game and insures the continued employment of the gamers.
I suspect many of us on this blog have direct knowledge of this gaming, whether it is in finance, law, environmental regulation, pharmaceutical regulation, etc.
We in the USA have been conditioned to believe very strongly in the rights of the individual. It appears we may have taken that belief to such an extreme that we have few individual rights left for the vast majority of us (aka "the great unwashed") as the most ruthless few now assert increasing control over us.
These parasites have always been a part of our society, as they have always been a part of any society. An analogy I find useful is that of intestinal bacteria. We have evolved a codependence with a host of these critters. Unfortunately, somehow our societal parasites (bankers, lawyers, etc.) have become malignant and threaten the existence of the host. We face the question of whether to try to treat this cancer or simply try to keep the patient comfortable until death occurs.
One problem is our acceptance that investment behaviors can, or even should, be reduced to the balance of greed and fear. If we are unable to develop a moral and ethical structure that includes a belief that our behavior must result in an overall improvement for society, this cancer will contiune to recur, each time more virulent.
on Fri, 09/25/2009 - 08:31
#79395
The moral basis of our culture has collapsed or is in the process of collapse. The first sign is when good people do nothing to stop or impede bad people (some would say evil) and instead look to see how they can take advantage of the resulting chaos.
Even those who don't pile on sit on their hands and say emotionally comforting things such as "I'm just one, I can't do anything about it" or "You can't fight city hall" or "I've got my own family to think about" and so on and so on.
This is the eventual result of the entitlement mentality. For those who think this term only applies to welfare or government hand outs, what's the difference between food stamps and TARP or TALF or the Stimulus package when push comes to shove?
on Fri, 09/25/2009 - 10:26
#79555
But does BofA'sactions scream immoral and unjust from the highest roof tops of NYC?
Since when is it 'immoral' to get my slice of the American Dream? You wierdo liberals crush capitalism by declaring what's 'right' and 'wrong.' If I put a deal together and can get both parties to do the deal, that's a good deal.
Today's lesson: capitalism is amoral. When a sale is made, the seller keeps the profit. So, profiting on questionable capital, children, slaves. It's all the same. In all cases, everyone is sleeping well after the sale.
on Fri, 09/25/2009 - 07:44
#79362
Illegal is the "new smart". Brightest guys in the room and all that.
on Fri, 09/25/2009 - 07:57
#79372
With no rule of law.......What is "illegal"?
on Thu, 09/24/2009 - 23:23
#79224
I prefer to get this kind of news from WallStreetPro.
on Thu, 09/24/2009 - 23:29
#79225
Jim, we all can use some wallstreetpro2 performance art. Obtw not sure if you guys saw Faber aka the next bond villain on bloomberg this week. Boy he is bearish on capitalism and called Uncle Ben an outright CRIMINAL. Strange days indeed, most peculiar momma.
http://www.youtube.com/watch?v=UfuiNjvH9_c&feature=player_embedded
on Thu, 09/24/2009 - 23:30
#79226
People bought this crap? Seriously? They actually bought these bonds? Unsecured?
on Thu, 09/24/2009 - 23:42
#79233
Ironically the issue may be illegal.. but politicians selling inside information isn't illegal - in fact its quite a booming business. (someone else posted this piece this morning.. not sure why this isn't bigger news.. it certainly blew me away.. and I'm a cynic!)
http://plus.cnbc.com/rssvideosearch/action/player/id/1269475331/code/cnb...
I will admit I laugh at about 4:27 given the Prof's polite "Duh" answer to Erin's question..
on Fri, 09/25/2009 - 06:37
#79335
I have no information about the bill, but the concept risks less transparency in government. Interesting post and pertinent,thanks.
on Thu, 09/24/2009 - 23:53
#79235
OK, OK, totally off topic, but hysterical. Here's how bad things are for NBC parent GE - I'm watching The Office tonight and I see a painfully horribly cheesy commercial for a GE product. But not compact flourescents, or some other thing that real people might actually care about. NO.
GE Jet Engines.
HAHAHA. They fill unused advertising slots with ads for jet engines? No wonder they had to let Kneale go...
on Fri, 09/25/2009 - 00:17
#79246
"GUARANTEED ON A SENIOR UNSECURED BASIS BY ALL GUARANTORS"
so....not guaranteed in other words?
Even after months of being on the site many of the bond entries are just over my head and i've googled the hell out of this stuff haha
on Fri, 09/25/2009 - 00:24
#79249
Ah, sweet sweet filthy illicit profits.
We'll all be having a Merry Christmas this year.
I mean the Crime Syndicate will be having a Merry Christmas.
Not sure what the rest of you will be doing. I hear crying into your beer down at the local pub is a good emotional release.
What do we care about you little people, I'm an Uber Villain, and part of the vast Crime Syndicate, and I hope you eat coal right out of your Christmas stocking!
(Evil laugh peals off into the darkness)
on Fri, 09/25/2009 - 01:43
#79267
Why don't we ever get to see in the main stream media, President Obama sitting at his his desk in the Oval Office at the Whitehouse?
on Fri, 09/25/2009 - 01:46
#79269
Why don't we ever get to see in the main stream media, President Obama sitting behind his Desk in the Oval Office at the Whitehouse?
on Fri, 09/25/2009 - 02:50
#79288
Because George locked the door and won't give the key? Remember when he made them stay at hotels during the transition?
George is keeping the place under lock and key for when Jeb Bush becomes president in 2012.
on Fri, 09/25/2009 - 04:49
#79309
Because the desk and other oval office furniture were repossessed by China? Because he's just a puppet and they can't figure out how to hide the puppet master under the desk?
Come on, give me a clue?
on Fri, 09/25/2009 - 04:55
#79313
Hes on live feed from his homeland (Kenya)
on Fri, 09/25/2009 - 04:32
#79303
Unfortunately.most of those foolish investor are unwilling participant.most probbably, those bonds gonna be marketed to mutual and retirement funds that people contribute to just to take advantage of either company's matching or tax deferral,therefore it is automatic OPM that goes to fund manager who also have to invest it,whether he likes the product or not. If you contact the contributor,explain to them where the money is going and how risky the company is,my bet is they either will not invest in it,or demand closerto 50%.......................
on Fri, 09/25/2009 - 05:27
#79319
Goldman upgrades homebuilders.
Watch for secondaries.
on Fri, 09/25/2009 - 05:33
#79320
Also see that Teacher's Pension Fund buying into the junker mattress craze.
http://news.yahoo.com/s/nm/20090925/bs_nm/us_simmons_bankruptcy
Who is letting THAT fund manager run amok???!!!
on Fri, 09/25/2009 - 06:10
#79326
After the great dumbing down by our educational system. The teachers will be allowed to sleep with more and more of thier students. So they will need alot of matresses. It'll be an extension of the authoritarian altar boy molestation implimented by the church.
on Fri, 09/25/2009 - 05:40
#79321
GS a week ago on RIMM
http://www.streetinsider.com/Analyst+Comments/Goldman+Sachs+Reiterates+Bullish+Stance+on+Research+In+Motion+%28RIMM%29+Ahead+of+Results/4951491.html
Today they cut it. Must be they unloaded all theirs and built a short position last week. LOL
on Fri, 09/25/2009 - 07:58
#79374
your link says it all.
on Fri, 09/25/2009 - 06:26
#79332
www.hedgeyourmind.blogspot.com
on Fri, 09/25/2009 - 07:24
#79357
Geez, fight over at the sound of the opening bell.
on Fri, 09/25/2009 - 08:16
#79382
sold to you SUCKA! i find the Harrah's debt issuance even more amazing - since the guys issuing it are not even under the guise of a public company - they are unabashed private equity pigs